Penalty Relief for Educational Institutions
By Ashley Cooper, HoganTaylor Tax Manager
The penalties under Internal Revenue Code Section (IRC) 6721 or 6722 will not be assessed against eligible educational institutions required to file Form 1098-T for 2015, solely because they fail to include a student’s correct Taxpayer Identification Number (TIN). This penalty was waived due to the recent legislation that waives the IRC Section 6721 and 6722 penalties for educational institutions that fail to file Form 1098-T with accurate TINs if the institution verifies, under penalty of perjury, that it properly requested the TIN from the students. This relief is limited to the 2015 Form 1098-T required to be filed by educational institutions by February 29, 2016 or March 31, 2016; if filed electronically.